In the third quarter of 2016, the
labour cost index (LCI) - wages and salaries
in the non-agricultural market sector increased at the same moderate pace as in the
previous quarter (+0.3% quarter on quarter, in seasonally adjusted data). Year on
year, it rose by +1.4%, nearly as much in Q1 2016. The average working time increased
sligthly (+0.1% y-o-y) after being stable in the second quarter.

The labour cost index - wages and salaries increased by 0.3%

In the third quarter of 2016, the labour cost index (LCI) - wages and salaries in the non-agricultural market sector increased at the same moderate pace as in the
previous quarter (+0.3% quarter on quarter, in seasonally adjusted data). Year on
year, it rose by +1.4%, nearly as much in Q1 2016. The average working time increased
sligthly (+0.1% y-o-y) after being stable in the second quarter.

graphique Graph1 – LCI - wages and salaries: year-on-year changes

Scope: non-agricultural market sector excluding household services

Sources: ACOSS, DARES, INSEE

Wages slowed down in industrial activities and accelerated in contruction

In Q3 2016, wages in industrial activities were stable in comparison to the previous
quarter (after a growth of +0.5% q-o-q in Q2 2016). This slowdown concerned every
industry. Year on year, they also decelerated (+1.5% after 1.9% in the second quarter).
Conversely, in construction, wages picked up quarter-on-quarter (+0.9% after −0,1%)
and they accelerated year on year (+2.5% after +1.4%).

In services, wages rose at the same pace than in second quarter

In services, wages grew as in Q2 2016 (+0.3% q-o-q). Nevertheless, year-on-year,
they decelerated slightly (+1.2% after +1.4%). In comparison to the previous quarter,
wages picked up in accomodation and food services. They slowed down in transportation-storage,
information-communication and professionnal, scientific and technical activities.
In the other activities, wages rose almost at the same pace as in Q2.

tableau Table1 – LCI - wages & salaries

SA - base 100 in 2012

LCI - wages & salaries

Quarterly variations (%)

Annual variations (%)

Q2-2016

Q3-2016

Q2-2016

Q3-2016

Industry

0.5

0.0

1.9

1.5

Mining and quarrying

0.4

0.1

–4.6

0.9

Manufacturing

0.3

0.0

1.9

1.4

Electricity, gas, steam and air conditioning supply

1.8

0.1

3.1

2.8

Water supply; sewerage, waste management and remediation activities

0.6

0.4

1.2

1.4

Services

0.3

0.3

1.4

1.2

Wholesale and retail trade; repair of motor vehicles and motorcycles

0.3

0.4

1.5

1.4

Transportation and storage

0.7

0.2

1.2

1.4

Accommodation and food service activities

–0.7

0.1

–0.1

0.4

Information and communication

0.6

0.4

2.0

1.8

Financial and insurance activities

0.4

0.3

2.9

1.7

Real estate activities

0.5

0.6

3.1

3.0

Professional, scientific and technical activities

0.3

0.0

2.5

1.8

Administrative and support service activities

0.3

0.4

0.1

0.1

Construction

–0.1

0.9

1.4

2.5

TOTAL

0.3

0.3

1.5

1.4

Scope: non-agricultural market sector excluding household services

Sources: ACOSS, DARES, INSEE

No revision for the Q2 2016

The variation in LCI - wages and salaries in the second quarter of 2016 in the non-agricultural
market sector excluding household services is unchanged, over a quarter as well as
over a year.

The labour cost index - total labour cost increased by 0.2%

In the third quarter of 2016, the labour cost index (LCI) - total labour cost in the non-agricultural market sector picked up sligthly quarter on quarter (+0.2%
in seasonally adjusted data, after –0.3% in Q2 2016). Year on year, the LCI - total labour cost also decelerated a little (+1.3% after +1.5). Without the tax credit for encouraging
competitiveness and jobs (CICE), the growth would have been the same quarter-on-quarter
as well as year-on-year.

graphique Graph2 – LCI - total labor cost: year-on-year changes

Scope: non-agricultural market sector excluding household services

Sources: ACOSS, DARES, INSEE

Downward revision of LCI – total labour cost for Q2 2016

The variation in LCI – total labour cost in the second quarter of 2016 in the non-agricultural
market sector excluding household services has been revised downwards by 0.1 percentage
points, quarter on quarter. The variation is unchanged year on year.